Tullibardine Distillery will provide the leftovers, including draff and pot ales, which will then be fed on by bacteria to produce butanol, a fuel that can be used to run vehicles.

Napier University’s Biofuel Research Centre, (Celtic Renewables is a spin off company from the University) has already shown that the right bacteria can feed on those by-products to produce butanol – a direct replacement for vehicle fuel.

Now Celtic Renewables, and independent malt whisky producer Tullibardine have signed a memorandum of understanding. Together they will apply the process to thousands of tonnes of the distillery’s leftovers.

The project is being supported by a grant from the Scottish government’s Zero Waste Scotland initiative.

Celtic Renewables said it eventually aimed to build a processing plant in Scotland, with the hope of building an industry that could be worth £60m a year.